Press Briefing: International merger creates biggest law firm

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Merger creates biggest law firm

Compiled by CBS MarketWatch

NEW YORK (CBS.MW) -- The partners of three major law firms -- Clifford Chance of London, Rogers & Wells of New York, and Puender, Volhard, Weber & Axster of Germany -- voted Saturday to extend a trans-Atlantic merger to the German firm, effective Jan. 1, 2000. In meetings on July 10, partners of Clifford Chance and Rogers & Wells had already agreed in principle to include Puender in their plans and thereby create the world's biggest law firm with 2,700 lawyers. The three firms said that their partners now voted with overwhelming majorities to confirm that agreement. Separately, partners of another German firm, Deringer Tessin Herrmann & Sedemund, agreed Friday that they will turn their alliance with London-based Freshfields into a full-scale merger on Jan. 1. The combined firm will have more than 1,300 lawyers, significantly boosting Freshfields' presence in the German market. Wall Street Journal

U.S. equity investors key on Japan

TOKYO (CBS.MW) -- Net purchases of Japanese equities by U.S. investors totaled $8.6 billion dollars in April-June, according to U.S. Treasury and Commerce Department data.U.S. investors have been net buyers of Japanese shares since late 1998. Net purchases totaled $1.9 billion dollars in October-December, and accelerated since as concern over Japan's financial system receded. The two U.S. departments' data show Japanese shares accounted for 11.5% of overseas equity investments by U.S. residents as of the end of June, up from 8.7% at the end of December. European equities held by U.S. investors, which accounted for 68.2% as of the end of 1998, saw their percentage drop to 61.9% by the end of June. Nihon Keizai Shimbun.

Sony to move Europe HQ to Berlin

LONDON (CBS.MW) -- Sony Corp. will move its Europe headquarters from Cologne to Berlin in October to oversee business lines which are now scattered across the U.K., Germany and France. The firm aims to take advantage of the unified European currency and the expanding East European market. Sony president Nobuyuki Idei, said his company plans more new factories in Eastern Europe. "The European market will expand eastward, and Berlin is right in the center," Idei said. "The mobile phone market in Europe is more advanced than that in the U.S. Europeans are conducting a wide variety of experiments in digital broadcasting. Europe should be a good place for Sony to experiment because it is home to leading companies such as Philips Electronics N.V., Siemens AG, Vivendi and Canal+," Idei's said in an interview with the Nihon Keizai Shimbun.

Greece backs EU cash aid to Turkey

LONDON (CBS.MW) -- Greece signaled a breakthrough in its relations with Turkey as it joined European Union partners in agreeing large-scale financial assistance to its historic rival. George Papandreou, Greek foreign minister, said at an informal meeting of EU foreign ministers that Athens was ready "in principle" to see Turkey as an EU candidate and eventual member of the union. The 15 EU foreign ministers agreed E30m ($31.5 million) of humanitarian aid and reconstruction assistance to help victims in the western Turkey earthquake zone.Financial Times

Daewoo's affiliates worry, creditors losing patience

SEOUL, South Korea (CBS.MW) -- The noose around Daewoo Group is getting tighter as its shaky finances hit the operations of its affiliates while international creditors show signs of losing their patience. South Korea's No. 2 conglomerate was dealt a blow Saturday as local creditors refused to extend additional loans to the group's major affiliates to help pay suppliers and fund operations. Many Daewoo suppliers either also face financial difficulties because of Daewoo and have to shut down production, or refuse to do business with Daewoo unless it is on a cash-payment basis. Daewoo Motor, which is negotiating with General Motors
GM, -2.45%
for a strategic alliance in its auto-making business, had to cut back production to 50-60 percent capacity because of a shortage of auto parts. Wall Street Journal

Malaysia speeding up bank mergers

KUALA LUMPUR, Malaysia (CBS.MW) -- Malaysia's central bank is speeding up its effort to force banks to merge, adding to the controversy surrounding the government's plan to group the country's financial institutions into six large banks. In meetings with chief executives of local banks last week, the central bank, Bank Negara, ordered the country's financial institutions to hammer out preliminary merger agreements by Sept. 11, moving up an earlier deadline of Sept. 30.We don't have a clue why [Bank] Negara is rushing this. But they clearly mean business," said the chief executive of a local commercial bank. Wall Street Journal

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